MARC Technocrats, an SME IPO, aims to raise Rs 42.59 crores. The issue is a combination of 0.37 crore fresh shares aggregating to Rs 34.13 crores and an offer for sale of 0.09 crore shares worth Rs 8.46 crores. The company has set the IPO price band between Rs 88 – 93 per equity share.
The funds raised through OFS will go directly to promoters and shareholders offloading their stake.
MARC Technocrats SME IPO: Key details
MARC Technocrats IPO opened for subscription on December 17 and closes on December 19. The allotment for the SME IPO is expected to be finalised on December 22. The IPO is likely to be listed on NSE SME on December 24, as per the tentative schedule.
MARC Technocrats SME IPO: Key financials
The company has a net profit of Rs 7.5 crore in FY25, a growth of 117% year-over-year from Rs 3.5 crore in FY24. The company reported a net profit of Rs 2.64 crore in FY23.
The company has posted a revenue from operations of Rs 47.75 crore in FY25, an increase of 83.3% YoY from Rs 26 crore reported in FY24. The company reported a revenue of Rs 20.16 crore in FY23.
Apart from that, the company sees a PE ratio of 16.97x at the upper price band. The company has a return on capital employed (ROCE) of 41%, while seeing a return on equity (ROE) of 31%.
| Comparison of PE ratio with peers | |
|---|---|
| Name of the Company | P/E Ratio |
| Marc Technocrats | 16.97 |
| Rudrabhishek Enterprises | 17.08 |
| Ceinsys Tech | 20.77 |
| Dhruv Consultancy Service | 11.52 |
MARC Technocrats SME IPO: Objectives of issue
The company will be using Rs 10.25 crore for the funding of capital expenditure requirements for the purchase of equipment and machinery. Also, it will be using Rs 17.5 crore to meet the expenses of the Working Capital Requirement. The company will be using the remaining funds for the general corporate purposes.
MARC Technocrats SME IPO: Key risks
Heavy reliance on government contracts and few key clients
The company’s major revenue heavily depends on infrastructure consultancy projects procured through government tenders, indicating an operation that is primarily based on a Business-to-Government (B2G) model.
Substantial working capital requirements and potential liquidity constraints
The company needs a lot of working capital for paying wages, salaries, and operating site offices. A liquidity crunch could force the company to increase working capital borrowings.
Limited experience with private sector projects
Historically, the company has focused primarily on government-tendered projects, leading to limited operational experience within the private sector. As the company seeks to expand into the private sector, it may face challenges related to understanding distinct private sector requirements.
MARC Technocrats SME IPO: Lot size
A retail applicant needs to apply for a minimum of one lot of 1,200 shares, amounting to Rs 2.23 lakh. The minimum lot size investment for a High Networth Individual is 3 lots of 3,600 shares, amounting to Rs 3.34 lakh.
MARC Technocrats SME IPO: Book runner and Market maker
Narnolia Financial Services is the book-running lead manager, and Maashitla Securities is the registrar of the issue. The Market Maker of the company is Giriraj Stock Broking.
About MARC Technocrats
MARC Technocrats is in the business of providing infrastructure consultancy services, including supervision and quality control, detailed project reports, techno-financial audits, and pre-bid advisory services. Incorporated in August 2007, the company offers services for infrastructure projects, such as roads and highways, railways, buildings, and water resources.
SECURITIES WARNING: EXTREME INVESTMENT RISK
SME IPOs constitute investments of inherently extreme risk. These securities are only suitable for investors with a sophisticated understanding of capital markets and a demonstrated capacity for total loss of principal. Due to low liquidity, investors must be prepared for severe price volatility and material difficulty in exiting the position. This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a SEBI-registered financial advisor.